hold again for deficit reduction talks for prize obama . on tuesday. thousands gathered at the capitol washington, d.c. to bring immigration reform. they are calling for a immigration reform act. it's calling for a bill to allow 11 million people t who live in the u.s. to live there lyle p l.

north korea's military is on high alert. japan and the u.s. and south korea are about to engage in hostile activity. >> they made headlines for saying how the universe formed with the boson particle. today peter higgs and francoise englert won the nobel prize for their work. those are the headlines. real money with ali veshi is next. >> ali: the scenario no one in washington wants to face. who gets paid and who gets stiffed. military versus education. and how government dysfunction

is affecting small business owners. and america's founding fares. fathers. how the new benjamin will make it harder for criminals. i'm ali veshi, this is "real money." this is "real money" you are always the important part of the show. please participate with us. join us? conversation. we are eight days into a government shutdown. congress will take america to the brimp brink of default after october 17th. that is when the government says they'll run out of money and trigger an economic shutdown that will hurt us all. >> you don't get a chance to teen phonphone your bank and sal

not pay my mortgage unless you get a xbox. >> you can imagine speaker boehner didn't see it that way. stock markets are not liking the talk of self in inflicted recession. the sp o svment r s & p is do. what markets feel the most is a default on the u.s. debt obligations. to avoid that the treasury have to pry o prioritizing what billt paid after october 17th. that is no easy task. they have 4 million transactions a day. and separating separatit

will be impossible. suppose treasury has no choice. they will make payments for popular programs only and withholding payments. coming up with the list is pure speculation. the bipartisan policy in washington has put together a schedule of payments that they may prioritize over others. interest payments and medicare and medicade and social security and social welfare and that will bring us to 22 billion doll lars thadid -- dollars. that is all the money they would have. the treasury would not have money for taxes due and veterans benefits and a whole host of other things. totaling $106 billion. failure to raise the debt ceiling will prevent the government from paying out the

money it already owes. the money it already owes. which is what some in congress do not understand. it's not that complicated. and that will wreak havoc on the economy. whatever you think on the federal economy and the deficits. the place to to deal with that is on the front end, during legislation and through the non-existent budgeting process on alcohocapitol hill how fenlte you that they will raise the debt ceiling. tell me what you think by tweeting me. or leave us a comment on facebook. all kidding about my hairdo aside. if you have any doubt that

nailinfailing to raise the debt ceiling listen to this. if the dreel ceiling is not raie economic growth will fall. doug handler is the chief economist doug thank you so much. i want to have this conversation with my viewers without the politics. i want the economics of this. how dangerous i is it that we gt into this position october 17 october 17th that somebody duetdoesn't get paid immediatel. >> how dangerous is that. >> it's extremely dangerous. there are many things going on. 20% of government expen expendis would have to be lopped off. it could have a huge spike in interest rates as a result of this as well. and that forecast that we had

may even be conservative. >> you are not out liars on this there are a lot of economists that say it's possible. and a lot of people say it's fearmongering. when you go back to august of 2011 by we got downgraded for the first time in history we didn't see interest agents are spike. are -- interest rates spike what is different from now to 2011. >> economic growth right now is weaker and most importantly this is the second time around for the debt ceiling debate as well. the first time we could dismiss iit as a fluke. and second time it's a condition that it's a recurring event. and maybe in our head we raise the probability that a actual he ddefault may happen. thats is a considerable difference when you think of it

as a reality. >> they used an an analogy the last time around you go on a trip three days and you takes three shorts with you and you stay a fourth day you grab the cleanest dirty shirt you have. and the u.s. at the time in 20 1 was the cleanest dirty shirt. is that the case will the chinese and the other asians and other pension funds find a place to invest their money because the u.s. keeps messing around with this obligation to pay? >> everything is subilitie sub s well. i don't think there has will be an abject run. but there will be a risk premium that we have to pay going forward here and something we can avoid.

>> thank you for sharing your analysis with us. well a new survey shows that small business owners have become significantly less optimistic about the next six months. with the madness going on in washington, can you blame them? not everyone is feeling down. we talk to a small manufacturers who expects the salessings to -o surge next year. all of that and real money when it returns. news stories? it drives discussion across america. share your story on tv and online.

averaged the white house is expected to name janet yellen as the chairwoman of the federal reserve. there are reports that the white house is confirm being. it will take place on wednesday at 3 p.m. at the white house. janet yellen is the vice chair of the federal reserve. she would be the first person to leave the fed. she was in with larry summers who withdrew his name from running a few weeks ago because this is a trofertio controversil campaign. janet yellen was expected after larry summers stepped out to

take over. she will be the fed chief. the term for benbe. america's small businesses account for heig half of all sml sector jobs. how do the companies feel about hiring and how the economy matters. on tuesday we got a new read. the small business optimism index fell in september two tenths of a point. the expectations of business and economic conditions six months ahead. the nfib says the reason for that drop may be the looming government shutdown when the survey of small business owners wrawas taken. we are in the shutdown now. in terms of hiring, 20% of employers had job openings think couldn't fill.

they said it was a positive for the nations unemployment rate. joining us now is jean card and she is the vice president of the national federation of small business which represents 350,000 small businesses in the united states. really the engine of the job growth in the u.s. jean thank you for being with us. >> what is your general take away on how small businesses are feeling in america. the general take away has not been good. it has not been good for sometime. we have been doing this index for whfor 40 years. small business should be doing better at this point. we see them lead an economy out of recession and create the jobs and we see bhad news an bad newk of optimism for six months.

it's not looking good and it hasn't for sometime which is a bad sign. >> the last year has not been bad economically. we have been creating jobs and home prices have been going up and that has helped retailers and interest rates remained low. all sortd sorts of good things e happening. if people are pessimistic about the next six months it's all the noise coming out of washington. that is a safe bet. small business owners are paying attention to what is going on in washington. it's a sector that is listening. it's not just the financial markets. the small businesse business crt of jobs. and don't forget about the healthcare law. that for the small business community is bad news. and they were looking down the beabarrel of october 1. >> you said bad news and we don't know what bad news yet.

most small businesses don't know how obamacare is going to affect their bottom line. where are they in that process? most small businesses don't have a hr department that can't figure it out for them. >> that is essentially part of the problem. they know it's complicated. they though ther know there arey have to comply with and they don't know what and how. the sense is foreboding and it's the unknown. the information they are getting right away is when they hear from their insurance agent who says, your premiums are going up. the rest is unclear and it he crecreates an overall feeling ts is not going to be good. >> jean thank you for being with us she is with the national federation of independent business. >> now among the ou the other fs they expect the sales to grow in

the year ahead. the company is called world class technology and it expects sales to grow 40% next year to $16 million joining us to explain is kent jensen. he is the company's chief financial officer. 40%. would you wow! , are people being born with more crooked teeth. >> we are rolling out new technology and we are taking that directly to the oute or tht donorthadontist. it's specific to your company and not what you you make. it's not that economy is going to surge as a result you will see 40% more sales. >> that is correct. the economy is segment by segment. it so happens that weir i that a

good position. we are taking the products to the orthodontist. and we are taking the product internationally and lower the coiflt. cost. that is helping us. >> what is the way in which you lower cost? >> we are direct mefer manufactg and we manufacture ourselves. we have a low cost to manufacturing. i think we compete very well with international boroug produn china and brazil. that is why our international and domestic section is growing as well. >> half of your sales come from export sales. the middle east and south america. we hear it's cheaper to manufacture and i will in china and other low cost manufacturing countries. you do your manufacturing here in the united states?

>> one hundred% right here in oregon. and we have some auto make auto. we manufacture the tools and the dyes that make our product and the machines that manufacture the product are highly automated. >> are you worried about the conversation going on right now about the debt ceiling? >> sure. you have to watch that. they'll obviously have to come up with a solution and raise the debt ceiling. we'll move on. a lot of it is political and i think we'll get past it just fine. >> i think it's entirely political. all right. money, money. the new benjamins rolled out

today loaded with plenty of security features to keep the countecounterfitters crying. i will do show and tell when "real money" continues. how much cash is withdrawn by americans every day from atm's. those are your options. the answer when "real money" continues.

♪ zblrntl >> someone incredibly famous to the a facial lift. facial -- facelift. today thi this one hundred dollr bill goes into circulation. the treasury department spent extra money to print it. you see the ble blue stripe down here. it's a security teet feature ifu

tilt the bill it changes from liberty bells to the number one hundred. very hard to replicate. thercountries with high inflatin trust. but as a canadian, let me make one quick pitch here. take a look at this e ca. why not try the canadian 100-dollar note. it's got a saucy little bit on the side and insulin vile on the front and it's worth a little more than a u.s. hundred dollar bill. chris is a an expert on this fay 100-dollar bill. he is the president of garda logistics. chris, thank you for being with us bell. >> wha.what is so cool about the hundred dollar bill.

>> ali it's great to see you again and thank you for the invite. it's a high quality bill. it has all of the security features that enhances the faith in the u.s. federal reserve. , you guys deal with money all the time. is it your concern. do you have to deal with the idea of counterfitting the idea there is a lot of money around. >> we do. every single day we are on the front line against counter counterfitting and every single person in o you our vault is cog across those every day. you have the mark in miami and los angeles and new york and they are leading the pack in counterfit attempts. >> the 100 is the middl most por bill. it'for people to hang on to but it's the most counterfitted

bill. >> it is. we reduced the counterfitting in america. >> how much cash is withdrawn every day by americans from atm's. chris we put up a few options there and i don't know the answer but you do. >> the answer is 3 to $5 billion. that is the amount of currency withdrawn by americans every single day from the atm networks alone. that excludes the banking transactions and any other form of currency. >> we are a cashless society i thought. how is it we are taking $3 billion plus out of atm's avenuevery day. we are seeing the elec electronc transactions and the same time the velocity of money and the

velocity of circulation and the hamiltoamount of bills have gror the last several years. if you go back to 2005 and how many hundred dollar bills were in circulation you are talking about 500 billion. and today this number is approaching 900 billion almost 1 one trillion dollars is circulated in 100-dollar demom . >> you are moving more? >> a lot of families have reverted back to cash-based budgeting for the households and a lot of people have become unbankable. and they have lost access to credit and banking process and they operate on a cash basis. >> chris you gave us a photo you

tweeted out to give us a sense of a vault. we asked our viewers to tweet in and say how much money is in this photo and reply with your guess sherma said approximately $50 million and i thought i saw a tweet where someone said $25,000 how much money is in there? >> it's roughly $34 million. it's a little different then in the movies you can't put it in a previouabriefcase. >> what do you do with the money that our viewers don't know of? >> we eliminate the money that enters the country that is counter fit. we act on behave of federal reserve. >> how much money do you carry around with you? >> i don't want anyone going up to you after the show and taking it but do you carry cash crchlt.

>> ali i'm a dream target. i do carry a lot. >> don't tell us anymore. belly don't want to get you in trouble. the show is called "real money." an update about a story i brought you last week. some very confused investors they bought talk in a tweeter home renovation group the problem is being that twister is not public yet. you can't buy it it's filed for the initial public oiferg. tweeter shares dropped from 1 cent to 1 15 crinlts. 15 cents. twisters ticker is twtr. regulators have changed tweetish's ticketweet twisters ticker. i want to repeat the news the white house on wednesday is

expecting to name janet yellen as the chairwoman of the fed reserve she is currently the vice chair. this is from multiple media reports. yellen has served as the vice chair since 2010. bebernake's sec term second tern 2014. >> the senior advisor withdrew his name. yel left en she would be the first woman to run the federal reserve in it's entire history. her appointment must be confirmed by the senate. anan update on a story we brought you last week. melissa hart. she depends own the early on thy

childhood program. ramone's school has been closed since last wednesday because the funding was shutdown. melissa can't go to work. her salary is equal to what she would pay for a babysitter. lawelaura and john arnold are providing money for the head start. the kids get to go to school and learn and get out and experience life. we contacted rah mea ramone's ss well. they are not sure when he will be back in the classroom.

>> we're looking at your feedback, and this is by far and away one of the most requested show topics from viewers. >> a lot of passion, and francis says look, drones can cause reduction in droop